KUCHHAL UDYOG, SOUTH DELHI V. ACIT, Circle-42(1), New Delhi

ITA 1810/DEL/2022

AI Insights

The case involves Kuchhal Udyog, the appellant, contesting an order from the Commissioner of Income-tax (Appeals) regarding the disallowance of ESI and EPF expenses amounting to Rs. 145,375 for the assessment year 2019-20. The appellant argued that the disallowance was unjustified and mistakenly included amounts not pertaining to the specified assessment year. The Departmental Representative supported the Assessing Officer's decision, citing precedents from the Supreme Court and various Division Benches of the Tribunal. The Tribunal found procedural errors in the reporting of income figures by the appellant and decided to remand the matter back to the Assessing Officer for accurate verification and lawful decision-making.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 112766 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 15-01-2023
• Assessment Year: 2019-2020
• Appeal Filed On: 09-08-2022
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(1)

Judgement Text

1 ITA no. 1810/Del/2022 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC”: NEW DELHI BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER ITA No. _1810/DEL/2022 [Assessment Year: 2019-20 Kuchhal Udyog. S-30, Greater Kailash Part-II, New Delhi-1100048 PAN- AAAFK1555C Vs ACIT, Circle-42(1), New Delhi. APPELLANT RESPONDENT Assessee represented by Shri Sanjay Mehra, CA Department represented by Shri Om parkash, Sr. DR Date of hearing 16.01.2023 Date of pronouncement 16.01.2023 O R D E R PER KUL BHARAT, JM: This appeal, by the assessee, is directed against the order of the learned Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, dated 28.06,2022, pertaining to the assessment year 2019-20. The assessee has raised following grounds of appeal: “1. Adhoc disallowance of expenss of Rs. 145375/- (ESI and EPF expenses) 2 ITA no. 1810/Del/2022 2. The CIT(A) erred in law, in facts and circumstances of the case and made an unjustified disallowance of ESI and EPF expenses of Rs. 145375/-. 3. The ld. CIT(A) erred in law, in facts and circumstances of the case and erred in disallowing amount of Rs. 145375/- for AY 2019-20 because such amount does not belong to expenses for ESI and EPF for AY 2019- 2020. 4. Erred in filing form 35. The appellant (Uchhal Udyog) fortuitously mentioned wrong amount in form 35 at the time of filing of appeal. The amount mentioned belongs to AY 2018-19. 5. The appellant craves leave to add, alter, amend or delete any of the above grounds of appeal.” 2. At the time of hearing the learned Authorized Representative, appearing on behalf of the assessee, submitted that the issue involved in this appeal is relating to disallowance of ESI/EPF expenses. He contend that the Assessing Officer had made addition by making adjustment u/s 143(1) of the Income-tax Act, 1961 (in short “the Act”) of Rs. 31,.437/- and had raised a demand of Rs. 4,260/-. He contended that the assessee by mistake, while filing the appeal before the learned CIT(Appeals) had wrongly mentioned income at Rs. 6,74,480/- instead of Rs. 5,29,105/- and the addition/ income thus arose to Rs. 1,08,890/-. 3. On the other hand, learned DR contended that so disallowance of ESI & EPF expenditure is concerned the same is now stands decided by the Hon’ble Supreme Court and has been followed by the various Division Benches of the 3 ITA no. 1810/Del/2022 Tribunal. Therefore, he submitted that the finding of the Assessing Officer deserves to be upheld. 4. I have heard the rival submissions. It is the contention of the assessee that before the learned CIT(Appeals) there was wrongly mention of sum of Rs. 6,74,480/- in place of Rs. 5,29,105/-. This fact requires verification at the end of the Assessing Officer. I, therefore, set aside the impugned order and restore the issue to the Assessing Officer to verify the correct amount and decide in accordance with law. Grounds raised by the assessee are allowed for statistical purposes. 5. Appeal of the assessee is allowed for statistical purposes. Order pronounced in open court on 16.01.2023. Sd/- (KUL BHARAT) JUDICIAL MEMBER *MP* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI